GMSR represents Precise Aerospace Manufacturing, Inc., a company that makes plastic parts from specialized molds owned by plaintiff MAG Aerospace Industries, LLC. MAG sued Precise for not delivering parts and molds on time and, after a bench trial, recovered $1.3 million it incurred in efforts to replicate the molds and parts before Precise delivered them.
GMSR’s appeal focused on remedy. GMSR argued that, while waiting for Precise to deliver the molds and parts, MAG was not permitted to spend $1.3 million to secure replacements that would take years to produce. The Ninth Circuit agreed. It reversed the entire $1.3 million awarded to MAG for its efforts to replace molds and parts—in some cases with directions for judgment to be entered in Precise’s favor, in others with directions that the district court make further determinations as to the reasonableness of MAG’s replacement-mold orders and Precise’s entitlement to an offset for the value of the original set of molds that Precise had eventually delivered.
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